Convergences and Divergences between Financial Reporting Systems of Romania and Spain

• Author: Laptes, R. - Sofian, I.
• Position: Dept. of Economic Sciences and Business Administration, Transilvania University of Brasov - Student at Economic Sciences and Business Administration, Transilvania University of Brasov
• Pages: 207-218

Bulletin of the Transilvania University of Braşov

Series V: Economic Sciences • Vol. 7 (56) No. 2 - 2014

CONVERGENCES AND DIVERGENCES

BETWEEN FINANCIAL REPORTING

SYSTEMS OF ROMANIA AND SPAIN

R. LAPTEŞ1 I. SOFIAN2

Abstract: The main objective of this paper is to perform a comparative

study regarding the theory and practice of financial statements in Romania

and Spain. To achieve this goal, we performed a documentary research of the

main papers of this area and of the applicable account ing regulations from

Romania and Spain, research that allowed us to identify convergences and

divergences about financial statements in both countries. The main

conclusion of this study is that, while Romania experiences improving its

financial reporting system by conformism, respectively by assigning through

legislation forms adapted to European accounting regulations, Spain chooses

a flexible development, trying to realize a complete presentation of the

accounting information published in the annual financial statements.

Key words: accounting, financial reporting, Romania, Spain.

1 Dept. of Economic Sciences and Business Administration, Transilvania University of Braşov.

2 Student at Economic Sciences and Business Administration, Transilvania University of Braşov.

1. Introduction

In times when information means more

than ever, we need it to be fair, intelligible

and complete. This need transforms

financial statements in the main instrument

which makes a company well known

between the economic actors, and

accounting the main provider of real

information which presents a fair image of

the financial position and performance of

economic entities.

Internationally, there have always been

differences of normalization in the

accounting field. Basically, there are two

types of accounting systems: the Anglo-

Saxon one, based on common law, with

low impact of taxation, using financial

reporting, and the Continental one, based

on Roman law, with a big taxation

influence on financial reporting system [1].

In the first one, the accounting rules are

developed by private professional

agencies, the financial statements are basic

and investors become the main users of

accounting information. The second one,

supposes a public normalization process

and points out the importance of the

general chart of accounts [2].

Both, Romania and Spain are part of the

Continental block and both organize their

accounting activity using a chart of

accounts and in accordance with

accounting regulations.

It is important to mention that the

Romanian accounting system and the

Spanish one are bout strongly influenced by

the French accounting doctrine, including the

charts of accounts of this countries were

inspired by the French one [3].